The Analytical Overview of the Main Currency Pairs on 2017.11.06

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16569

Open: 1.16104

% chg. over the last day: -0.42

Day's range: 1.15598 – 1.16242

52 wk range: 1.0341 – 1.2069

The United States published mixed data on the labor market. At the same time, support for the US currency was provided by positive statistics on business activity in the non-manufacturing sector of the US from ISM. On Friday, November 3, the bearish sentiment prevailed on the EUR/USD currency pair. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating in the range of 1.16000-1.16200. We recommend opening positions from these marks.

The news background for 2017.11.06:

- A number of indices of business activity in Germany and the Eurozone at 10:55 (GMT+2:00) and 11:00 (GMT+2:00), respectively.

The EUR/USD quotes have fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.16000, 1.15750

Resistance levels: 1.16200, 1.16750

If the price fixes below the round level of 1.16000, we recommend considering sales of EUR/USD. The movement is tending to 1.15750-1.15500.

Alternative option. If the price fixes above 1.16200, the bullish sentiment may prevail on the EUR/USD currency pair. The target movement level is 1.16500-1.16750.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30574

Open: 1.30693

% chg. over the last day: +0.13

Day's range: 1.30581 – 1.30885

52 wk range: 1.1450 – 1.3618

At the moment, GBP/USD is consolidating after a significant drop last week. The technical pattern is ambiguous. Correction is not ruled out in the near future. The key support and resistance levels are 1.30700 and 1.31000 respectively. It is recommended to open positions if the price fixes above/below these marks.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.30700, 1.30400

Resistance levels: 1.31000, 1.31400

If the price fixes above the 1.31000 mark, we expect a correction of GBP/USD. The movement is tending to 1.31400-1.31500.

Alternative option. If the price fixes below 1.30700, we recommend considering sales of GBP/USD. The closest target for profit taking is the support level of 1.30400.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28116

Open: 1.27564

% chg. over the last day: -0.35

Day's range: 1.27539-1.27691

52 wk range: 1.2059 – 1.3795

On Friday, the bearish sentiment prevailed on the USD/CAD currency pair. The Canadian dollar was supported by a fairly optimistic report on the labor market. At the moment, the trading instrument is consolidating. The key trading range is 1.27500-1.27800. We are waiting for statistics from Canada. We also recommend paying attention to the dynamics of the oil quotes.

At 17:00 (GMT+2:00) the index of business activity in Canada from Ivey will be released.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.27500, 1.27000

Resistance levels: 1.27800, 1.28250

If the statistics from Canada is optimistic, we recommend considering selling USD/CAD. The movement is tending to the round level of 1.27000.

An alternative may be the growth of the USD/CAD quotations to the level of 1.28250.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 114.082

Open: 113.999

% chg. over the last day: -0.01

Day's range: 113.999 – 114.735

52 wk range: 99.53 – 118.67

Last week, trading on the USD/JPY currency pair was quite active. At the same time, a unidirectional trend was not observed. At the moment, the technical pattern is still ambiguous. The trading instrument is in a sideways trend. The USD/JPY quotes are testing the local support and resistance levels: 114.000-114.250. We recommend paying attention to the US government bonds yield.

The Bank of Japan intends to adhere to the current rate of the monetary policy.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.